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A Petroleum Company Has a Cobb-Douglas Production Function f(x,y)=70x2/5y3/5f ( x , y ) = 70 x ^ { 2 / 5 } y ^ { 3 / 5 }

Question 3

Multiple Choice

A petroleum company has a Cobb-Douglas production function f(x,y) =70x2/5y3/5f ( x , y ) = 70 x ^ { 2 / 5 } y ^ { 3 / 5 } where x is the utilization of labor and y is the utilization of capital. Determine the number of units of petroleum produced when 1200 units of labor and 2100 units of capital are used.


A) 175,174 units
B) 150,000 units
C) 105,074 units
D) 117,517 units

Correct Answer:

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